Introducing Section 503: Creating New
Opportunities for Ticket Holders
Social Security’s Ticket to Work Program
Operations Support Manager
Learning Objectives
1. Identify the types of Federal contractors that fall under
the Section 503 rules.
2. Provide a very brief overview of what the new 503 rules
require of Federal contractors.
3. Explore how Employment Networks (ENs) can use the
new 503 rules to expand the opportunities available for
beneficiaries to gain and sustain good jobs and careers
that can lead to better self-supporting futures.
4. Learn to locate Federal contractors and research the
employment opportunities they offer in your local area.
5. Highlight the importance of developing partnerships with
existing referral sources such as American Job Centers
(AJCs) and State Vocational Rehabilitation (VR)
agencies.
“These new rules are a win-win. They will benefit
veterans and people with disabilities, who belong in the
economic mainstream of the nation but have faced unfair
barriers in the job market. They will benefit employers
who do business with the federal government, increasing
their access to a large, diverse pool of qualified workers.
And they will benefit the entire nation, as these rules
help us fulfill the American promise of equal opportunity
for all.”
Tom Perez, Secretary
U.S. Department of Labor
Official Blog of U.S. Department of Labor
August 27, 2013
Types of Federal Contractors That Fall Under
Section 503 Rules
Federal Contractor 503 Obligations Based on the
Size of the Contract and Number of Employees
• Affirmative Action requirements apply to all Federal contractors and
subcontractors with $10,000 or more in awards. (41 CFR 60 Section
741.44)
• Federal contractors/subcontractors must prepare and maintain an
Affirmative Action Program (AAP) if they have $50,000 or more in
awards and 50 or more employees. (41 CFR 60 Section 741.44)
• Federal contractors with $100,000 or more in awards secured after
2003, are also required to post job openings with an employment
service delivery system such as:
 American Job Centers
 State Vocational Rehabilitation (VR) agencies
 Employment Networks
•
http://www.dol.gov/ofccp/regs/compliance/section503/503_summary_qa_
508c.pdf
What Do the New 503 Rules Require of Federal
Contractors?
Section 503 Requirements
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Prohibits Federal contractors (and organizations subcontracting with
them) from discriminating in employment against individuals with
disabilities.
The new rules strengthens the affirmative action provisions of the
regulations to help Federal contractors in their efforts to recruit, employ,
train, promote and retain individuals with disabilities, and improve job
opportunities for them.
Current Federal contractors with a written Affirmative Action Program
(AAP) already in place on the effective date of the new rules will have
additional time to come into compliance with the new AAP requirements.
Final rules published on September 24, 2013, and changes become
effective on March 24, 2014, 180 days from publication.
For more information visit:
http://www.dol.gov/ofccp/regs/compliance/section503.htm
Key Changes of Interest to ENs
• Establishes a nationwide 7 percent utilization goal for employing
qualified individuals with disabilities.
• Employers can meet the 7 percent goal by:
 Inviting current employees to self-identify
 Inviting applicants to self-identify
• Requires that Federal contractors document and update annually,
quantitative comparisons for the number of individuals with disabilities
who apply for jobs and the number hired.
 For more information, visit:
http://www.dol.gov/ofccp/regs/compliance/section503.htm
New 503 Rules Offer Exciting Opportunities for ENs
and the Beneficiaries They Serve
Federal Contractor Employment Opportunities
• Of the 155,486,000 civilians in the U.S. workforce as of August
2013, approximately 22%, or an estimated 34 million workers, are
employed by over 200,000 Federal contractors and subcontractor
companies.
• Nearly $700 billion in Federal funds (roughly 14% of the Federal
budget) was spent on Federal contracts in FY 2012.
• To meet the 7% utilization goal established in Section 503, the U.S.
Department of Labor (DOL) estimates that Federal contractors
would need to hire an additional 594,580 individuals with disabilities.
Sources:
Bureau of Labor Statistics on line report at: http://www.bls.gov/news.release/pdf/empsit.pdf
Office of Federal Contract Compliance Programs, U. S. Department of Labor, www.dol.gov/ofccp/
CNN Money July 2012 Report on line at: http://money.cnn.com/2012/07/23/news/economy/federalspending/index.htm
U.S. Department of Labor, Office of Federal Contract Compliance Programs (www.dol.gov/ofccp/)
Federal Register (https://www.federalregister.gov/articles/2013/09/24/2013-21228/affirmative-action-andnondiscrimination-obligations-of-contractors-and-subcontractors-regarding)
Types of Employment Opportunities
Examples of activities funded under Federal contracts:
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Information technology and website development
Research and demonstration projects
Training and technical assistance
Vehicle maintenance and repair
Landscaping and pruning
Guard duty/building security
Food services, e.g., serving meals for soldiers and
veterans
 Printing and copying
Note: Section 503 rules apply to all positions, at all
training and education levels, with a Federal
contractor company.
Locating Federal Contractors and Employment
Opportunities in Your Geographic Area
Federal Contractor Organizations
Some of the regional/national organizations representing the
interests of Federal contractors.
• The National Industry Liaison Group
(http://www.nationalilg.org)
• Regional Industry Liaison Groups (access links on the national
website listed above)
• The Associated General Contractors of America
(http://www.agc.org/)
• The Professional Services Council
(http://www.pscouncil.org)
Using Federal Data Banks and Resources
The Federal Procurement Data System – Next Generation (FPDS-NG): Use
the FPDS-NG website to access data that provides details on the procurement
activities of more than 60 Federal departments. Review the Successful Search
Techniques section prior to using the system. Visit:
https://www.fpds.gov/fpdsng_cms/
General Services Administration (GSA): Use the GSA Subcontracting Directory
to locate large prime contractors who have received Federal contracts, other than
construction, valued at over $650,000; and large prime contractors who have
received Federal contracts for construction valued at over $1.5 million. Visit:
http://www.gsa.gov/portal/content/101195
Register Your EN with OFCCP: ENs should register on the DOL OFCCP
Employment Resource Referral Directory (ERRD)
visit: http://www.dol.gov/ofccp/ERRD/errsrvs.htm
Search Results Examples from Federal
Procurement Data System
Landscaping/Lawn Service
Melwood Horticultural Training Center (Ability One Contractor), Upper
Marlboro, MD, Department of the Army – Fort Meade, MD, Award:
$84,870,423, awarded 6/2011, completion expected 6/2016 (4 option years).
(SEARCH: Melwood, MD, Ability One, by date signed)
Computers Equipment and Support
Dell Federal Systems Limited Partnership, Round Rock, TX, Environmental
Protection Agency, Round Rock, TX, Award: $276,616, awarded 9/2013
completion expected 11/2013, (equipment order).
(SEARCH: Dell Computers, TX, by date signed)
Examples of Search Results (cont.)
Military Equipment
Cessna Aircraft Company, Wichita, KS, Award: $319,770,400,
Department of the Air Force, Pentagon, VA, performance – Wichita, KS,
awarded 6/2013 completion expected 7/2014 (equipment order).
(SEARCH: Aircraft, KS, by date, by action obligation, i.e., amount)
Food Service
Lakeview Center Inc, Pensacola, FL, Bureau of the Public Debt – Armed Forces
Retirement Home, Gulfport, MS, Award: $9,058,477, awarded 10/2013,
completion expected 10/2014 (one year).
(SEARCH: “Food Service”, Florida, by Date, by action obligation)
Guard/Security Service
Cypress Security, LLC, San Francisco, CA, Department of Veterans Affairs,
Sacramento, CA, Award:$5,219,353, Date awarded 10/2013 – completion
expected 9/2017, (4 option years). (SEARCH: “Security Guards”, CA, by date)
Sources:
Federal Procurement Data System at: https://www.fpds.gov/fpdsng_cms/
General Services Administration at: www.gsa.gov
If You Know the Company is a Federal Contractor
If you know the company is a Federal contractor through
common knowledge or by GSA or FPDS research, you may:
1.Search the company’s website: Look for references to human
resources, careers, hiring, recruitment, job openings
2.Go to your state or local American Job Center (AJC –
previously called One-Stop Career Centers) and search for jobs
in your geographic area. The AJC serving your area can be
found by accessing a clickable state map at:
http://www.doleta.gov/usworkforce/onestop/onestopmap.cfm
3.Use Private Sector Meta Search Engines by Company Name
(see slide 22).
Using the Public Job Search Engine
• Go to your State or local AJC or access the State AJC
website that list jobs throughout the State. Use online
job-seeker resources, conduct a search with the
company’s name for current job postings, search by job
type, etc.
• If the company was awarded $100,000 or more in
contracts since 2003, it is required to post job openings
with an employment service delivery system. These
services are part of the AJC delivery system established
by the States under Section 134 of the Workforce
Investment Act of 1998.
Using Public Job Search Resources (cont.)
Affirmative action search using the American Job
Centers’ system – To see which affirmative action
employers are posting jobs with your State and local
AJCs:
• Enter any state or local AJC as a job-seeker.
• Use the on-line search tools and key word searches to identify
affirmative action employers and job openings. For example,
use a job title or category (e.g. accountant or accounting) or
key skill set words coupled with the term AA (affirmative
action) and define the geographic parameters in the search
(e.g. Milwaukee, WI). This will generate a list of job openings
with employers in the Milwaukee area who have identified
themselves as Affirmative Action employers.
Private Sector Meta Search Engines
by Company Name
Search using the available search tools, key occupation
or skill set words, and using the terms “affirmative
action” and/or “equal opportunity employer” with
geographic parameters.
www.monster.com
www.indeed.com
www.careerbuilder.com
www.dice.com (Technology jobs)
www.linkedIn.com
Consider Developing Partnerships with Existing
Referral Sources
Partnering with Existing Partners
• The majority of Federal contractors have established
relationships with their local workforce agency (AJCs,
comprehensive One-Stop Centers, etc.) and/or their
State VR agency.
• Reach out to the AJCs serving your community and
discuss partnering to fill jobs with Federal contractors
under Section 503
 Talk about the service your EN offers.
 Discuss referral sources, screening, ongoing
supports, etc.
 Learn more about partnering with established
partners during the January 2014 All EN call.
Start Planning Now
• Begin developing expertise and becoming familiar with Federal
contractor opportunities and Section 503 requirements.
• Research Federal contractors in your area now.
• Reach out to Federal contractors, AJCs, and your State VR agency
to establish relationships prior to March 2014. Tell them about your
services. Offer assistance in identifying resources. Discuss
establishing a partnership and a system for referring qualified job
applicants.
• Start developing marketing materials targeted specifically to Federal
contractor employers.
• Start creating internal screening and training components that can
be used to identify qualified beneficiaries and prepare them to apply
for positions with Federal contractors.
Secretary Perez on New 503 Rules
“Being a federal contractor is a privilege − one that comes
with the reasonable responsibility to abide by the law and
provide equal employment opportunity to all workers.
Today’s new rules make those expectations clearer and
more meaningful. We will continue to work with all
stakeholders as they implement these changes, promoting
opportunity and access for millions of workers across
thousands of workplaces.”
Tom Perez, Secretary
U.S. Department of Labor
August 27, 2013
For More Information
Contact OFCCP
•Visit the OFCCP website: www.dol.gov/ofccp/
•Call OFCCP toll-free: 1-800-397-6251 (TTY: 1-877-889-5627)
•Email OFCCP: OFCCP-Public@dol.gov.
•Contact or visit the OFCCP field office nearest you. The OFCCP
office directory is available at:
http://www.dol.gov/ofccp/contacts/ofnation2.htm
Visit the Your Ticket to Work website at:
https://yourtickettowork.com (key word search - Section
503)
Attend OESP monthly Section 503 training series